Application of the Penalty Cost Model to Centrally Managed Items,

Abstract

The report compares and evaluates the current UICP (Uniform Inventory Control Point) physical inventory selection method with PCM (Penalty Cost Model). The report also evaluates the sensitivity of parameter changes in the UICP physical inventory program. Analysis of ICP inventories demonstrated that the number of inventories can be drastically reduced without adversely affecting requisition effectiveness while also increasing the net worth of taking the inventory. Thus, inventorying resources are used in a more cost effective manner. (Modified author abstract)

Document Details

Document Type
Technical Report
Publication Date
Oct 17, 1973
Accession Number
AD0768731

Entities

People

  • G. S. Crum

Tags

DTIC Thesaurus Topics

  • Abstracts
  • Cost Models
  • Costs
  • Inventory
  • Inventory Control
  • Sensitivity

Readers

  • Computational Modeling and Simulation
  • Logistics and Supply Chain Management.